Replacing trustees by beneficiaries TOLATA 1996 s. 19
Under TOLATA 1996 s. 19, adult beneficiaries with absolute entitlement can direct existing trustees to retire and appoint specified new trustees in writing.
This section applies in the case of a trust where— there is no person nominated for the purpose of appointing new trustees by the instrument, if any, creating the trust, and the beneficiaries under the trust are of full age and capacity and (taken together) are absolutely entitled to the property subject to the trust. The beneficiaries may give a direction or directions of either or both of the following descriptions— a written direction to a trustee or trustees to retire from the trust, and a written direction to the trustees or trustee for the time being (or, if there are none, to the personal representative of the last person who was a trustee) to appoint by writing to be a trustee or trustees the person or persons specified in the direction. Where— a trustee has been given a direction under subsection (2)(a), reasonable arrangements have been made for the protection of any rights of his in connection with the trust, after he has retired there will be either a trust corporation or at least two persons to act as trustees to perform the trust, and either another person is to be appointed to be a new trustee on his retirement (whether in compliance with a direction under subsection (2)(b) or otherwise) or the continuing trustees by deed consent to his retirement, he shall make a deed declaring his retirement and shall be deemed to have retired and be discharged from the trust. Where a trustee retires under subsection (3) he and the continuing trustees (together with any new trustee) shall (subject to any arrangements for the protection of his rights) do anything necessary to vest the trust property in the continuing trustees (or the continuing and new trustees). This section has effect subject to the restrictions imposed by the Trustee Act 1925 on the number of trustees.
Text in force at .
Source: legislation.gov.uk — The National Archives (legislation.gov.uk), reproduced under licence Open Government Licence v3.0.
What it actually says
Section 19 gives beneficiaries the power to compel a trustee to step down and appoint replacement trustees. This power applies only where the trust document does not nominate a specific person to appoint trustees, and where all beneficiaries are of full age and legal capacity and together hold absolute entitlement to the entire trust property.
To exercise this power, the beneficiaries must issue a written direction requiring a trustee to retire, along with a written direction appointing the replacement. The retiring trustee must execute a deed declaring their retirement once reasonable arrangements protect their existing trust rights, provided the trust is left with either a trust corporation or at least two trustees in line with the Trustee Act 1925.
When it applies
- All adult beneficiaries who jointly own the entire beneficial interest in a property direct an uncooperative trustee to step down and appoint a trust corporation.
- Two adult beneficiaries holding absolute entitlement under a property trust issue a written direction forcing a sole trustee to retire and appointing two replacement trustees.
- The sole adult beneficiary of a land trust directs the personal representative of a deceased sole trustee in writing to appoint a new named trustee.
What this section does not say
- Removing a trustee when the trust deed specifically nominates another person to appoint new trustees.
- Forcing a trustee retirement when one or more beneficiaries are minors or lack legal capacity.
- Resolving disputes about selling the trust property or determining rights of occupation, which are dealt with under TOLATA 1996 s. 14.
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This page reproduces the text of TOLATA 1996 s. 19 in force at the date shown and explains it in general terms. It is not legal advice and takes no account of the circumstances of your case, which can change the answer completely. For a live dispute, for limitation periods, and before taking any step in court, consult a qualified lawyer in England and Wales.